WEBVTT - Shell Advances, BAE Systems Gains, IAG Falls 

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<v Speaker 1>Bloomberg Audio Studios, podcasts, radio news, The Stock Movers Report,

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<v Speaker 1>your roundup of companies making moves in the stock market,

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<v Speaker 1>harnessing the power of Bloomberg Data.

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<v Speaker 2>Now, let's take a look at some of the stocks

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<v Speaker 2>on the move here in Europe. I'm Caroline Hepga and

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<v Speaker 2>I'm joined by Bluebeg's Markets Today editor Sam Onsted. Sam,

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<v Speaker 2>let's start with oil, a key part of the Middle

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<v Speaker 2>East story today. How is shelf faring and other stocks

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<v Speaker 2>attached to the oil market?

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<v Speaker 3>Yeah, so, I think you know, this is probably you know,

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<v Speaker 3>the main mechanism through which all of this concern and

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<v Speaker 3>the geopolitical concern is feeding into markets. But you know,

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<v Speaker 3>so oil prights is up at the moment, you know,

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<v Speaker 3>on my screens at about nine percent. For break crud,

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<v Speaker 3>oil stops aren't quite rising that much, so they're all up.

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<v Speaker 3>The stock six hundred Energy index is at a new

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<v Speaker 3>record high. It has been heading in that direction pretty

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<v Speaker 3>consistently over the course of the last year or so,

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<v Speaker 3>and certainly since they're kind of tariff chaos last year.

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<v Speaker 3>But yeah, you know, the key question not only for

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<v Speaker 3>all stocks, but I suppose for broader markets as well,

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<v Speaker 3>is how long this goes on for how sustained it is.

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<v Speaker 3>But right now you're seeing a kind of knee jerk

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<v Speaker 3>pricing in a much higher oil price in the short term.

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<v Speaker 2>Yeah, absolutely, USR price is also surging eight percent for

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<v Speaker 2>WCI crewed and natural gas prices in Europe and the

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<v Speaker 2>UK really seeing a big jump in natural gas prices

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<v Speaker 2>in the UK up almost thirty percent. Defense stocks, though

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<v Speaker 2>more broadly, have gained of course, on the concerns about

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<v Speaker 2>ongoing conflict. Tell me which stocks have gained on that.

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<v Speaker 3>Yeah, again, pretty much all of them and another you know,

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<v Speaker 3>fairly predictable move BA systems for example, as much as

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<v Speaker 3>I think eight percent earlier on today, some of those

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<v Speaker 3>games are pared a little bit, but again very strong

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<v Speaker 3>performance there, and effectively by defense companies becoming kind of

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<v Speaker 3>defensive stocks. When things like this happen, you know, there's

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<v Speaker 3>a very clear runway for out of the outlook for

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<v Speaker 3>them for spending from governments around the world, and this

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<v Speaker 3>only kind of strengthens that case.

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<v Speaker 2>Lastly, travel stocks, there have been flight cancelations, very widespread

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<v Speaker 2>broad flight cancelations in the Middle East. Obviously, what does

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<v Speaker 2>that mean for the likes of IAG and the other

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<v Speaker 2>travel and tourism stocks.

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<v Speaker 3>So this is the flip side really of the story

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<v Speaker 3>we were just talked about, particularly when it comes to oil.

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<v Speaker 3>So you've got the combination of oil going up, so

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<v Speaker 3>there's again a kind of knee jerk reaction to the

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<v Speaker 3>potential that fuel costs are going to go up quite

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<v Speaker 3>significantly for airlies. But probably more significant is what you

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<v Speaker 3>just mentioned Caroline, not just you know, flight shutdowns and

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<v Speaker 3>operations being shut down, but in an extremely important part

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<v Speaker 3>of the global airline industry, you know, particularly from Dubai

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<v Speaker 3>and the UAE, extremely important for you sort of super

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<v Speaker 3>connector hub for the airline industry. So it's crippling for

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<v Speaker 3>the whole industry. And again the question will be how

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<v Speaker 3>long does this go on for how sustained is this

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<v Speaker 3>before you can really start to understand how much of

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<v Speaker 3>a financial hit these companies are going to take.

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<v Speaker 1>The Stock Movers Report from Bloomberg Radio. Check back with

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